Attention! Do you know where all your assets are? Many individuals may have rights to foreign pensions and do not even know it.

In the course of presenting workshops in Bermuda over the last four years, I often ask participants, "What nationality are you? " "Tell me about your marital record, who you are married to now, were you married before", and "did you ever work in another country?"

At first, clients often look a little affronted.

Imagine just meeting someone and asking these rather personal questions, but there is a reason, a very good reason. Take the example below.

You are a 50-year-old foreign national; you could be Bermudian, English, Canadian, Irish, etc. You have worked in the United States and in Canada.

Your first marriage was to a US citizen- years ago, after a disastrous 12-year relationship, you divorced and returned to Bermuda for permanent residence.

The above narrative has just laid out a very interesting fact pattern.

On the surface, it appears that there may be additional pension income due you from three different sources.

Would you believe that clients often don't even know they have contributed pensions in other countries, and have no idea what they are worth! During the holidays this year (with a hot toddy if need be), take time to review all of your finances.

This exercise will help you keep to a Christmas budget, too!

Analyse your pension and other investment allocations, see if your savings goals are on target, compare results and records to see just what you own and where you stand.

If you have worked in other countries (or were married to a citizen of another country), go back in time to review your employment and marital history.

Why, because you may have accrued enough foreign employment earnings credits to apply for - and receive - a foreign government pension in your own right and/or you may be eligible for a pension from another country through your rights of marriage.

Here are summaries, in general, of three countries' Social Security/Government Pension rules.

Keep in mind that tax laws are subject to change without notice, and that you should always contact the source provider to verify general information.

United States Social Security www.socsec.gov Website requires medium concentration.

Individual Employment history - You or your spouse must have accrued 40 quarters of credits (ten years) and have earned a minimum of $3,480 each year to be eligible for US social security credits.

If you are divorced or widowed whether you are a US citizen or not, and you were married to the US person for more than ten years, you will have a right to file a claim for social security benefits payable at age 65 (70 for a foreign national).

It does not matter if your ex-spouse was married (and divorced) six times in his/her life, if you meet the ten-year rule, you may qualify.

A foreign national collecting Social Security will also have withholding tax deducted at source, currently estimated at 30% of the benefit payment.

United Kingdom www.inlandrevenue.gov.uk Website tedious, too general, not enough specifics.

Individual Employment history - The credit accrual rules are a little different, but it appears that you must have worked a substantial amount of time similar to the US rules, but you can receive a partial pension if you do not meet the minimums.

The UK is unique in that it allows you to 'top up' your pension if you have not accrued sufficient earnings, even if you no longer reside there.

UK has a reciprocal agreement with Bermuda to allow US expatriates to transfer their Bermudian government pension credits to their UK employment history, to allow for the retirement full credit accumulation.

UK pays a widow (er) allowance based upon the deceased pension earnings, but no mention is made of divorcees.

Those surviving spouses of a UK citizen may be eligible for a partial pension, regardless of where you currently reside; taxes will be withheld on payments.

Canada http://www.hrdc-drhc.gc.ca/isp/internat/soc_sec_e.shtml Website great, not just Canada, but all international social security plans, full of help aids.

Individual Employment history - You or your spouse or common-law partner must have accrued an estimated ten years of credits to be eligible for Old Age Security and the Canadian Pension Plan.

Canada does recognise divorce situations under a credit divvying up type plan, whereby even if you never worked, you will be eligible for part of your spouse's or common law partner's social security.

Canada also recognises the migratory patterns of the human population and reaches out to help; if you have lived or worked in another country or you are the surviving spouse or common-law partner of someone who has lived or worked in another country, you may be eligible for benefits from Canada or abroad. Taxes may be withheld at 25%.

Bermuda www.gov.bm You may be entitled to a government pension if you have accumulated approximately at least 17 quarters of employment earnings contributions.

Those with less can elect to take a one-time lump sum payment at age 65, and this includes any expatriate who has paid into the Bermuda Government pension.

Individual situations may very; you should identify your (your spouses) employment history, and ask for help until you receive an answer. Many people say, "Why bother? " It is just so much aggravation.

Wading through government bureaucracy and endless paper trails is not a picnic at the beach. Nevertheless, even $200 per month buys something, gas for four weeks, bus and ferry passes, basic food.

If you have paid into another country's coffers and could recoup some of the investment in your dotage, shouldn't you at least try? Anecdote. After one particularly interactive finance workshop a couple of years ago, five ladies came forward, all of whom had been married for various lengths of time to United States citizens.

When I politely inquired of one lady, how long she had been married, she replied, "seventeen years."

From the way she referred to her ex-husband, I then asked if he was dead. She replied, "No, the b........, but I wish he was! " Her revenge was collecting half of his US social security benefits!

****

Martha Harris Myron CPA CFP(tm) is a Bermudian, a Certified Financial Planner(tm) (US license) practitioner and VP and Manager, Personal Financial Services, Bank of Bermuda. She holds a NASD Series 7 license, is a former US tax practitioner, and is the winner 2001-The Bermudian Magazine Best of Bermuda Gold Award for Investment Advice. Confidential Email can be directed to marthamyronnorthrock.bm

The article expresses the opinion of the author alone, and not necessarily that of Bank of Bermuda. Under no circumstances is this advice to be taken as a recommendation to buy or sell investment products or as a promotion for financial plans. The Editor of the Royal Gazette has final right of approval over headlines, content, and length/brevity of article.